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BioTelemetry, Inc. Message Board

  • chris_cs16 chris_cs16 Dec 10, 2013 6:56 PM Flag

    Recent Medtronic Acquisition of Cardiocom

    In August this year, Medtronic purchased a competitor of BioTelemetry for $200 million. Cardiocom had sales of about $50 million at the time of acquisition. BioTelemetry has sales of $120 million, yet is valued at $165 million, or less than what Medtronic paid for Cardiocom.

    At this price, BioTelemetry could represent an attractive takeover candidate and medical device companies look to grow their "telehealth" presence.

    Medtronic is particularly interested in heart health as stated in the Cardiocom acquisition PR:

    "The first area of focus for Medtronic will be in heart failure, where the addition of the Cardiocom technology and patient services to its product offerings will expand its reach to more patients across the heart failure care continuum."

    This seems like a great opportunity to purchase a company in a hot space for a price well below what other companies are paying for similar assets. If BioTelemetry was valued at a similar revenue multiple as Cardiocom, we'd be looking at a $17.80 share price... Not sure why anyone would want to short here...

    Sentiment: Strong Buy

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    • Joe Capper, President and CEO of BioTelemetry used to be CEO of Home Diagnostics, Inc. He joined Home
      Diagnostics in 2009 and positioned the Company for a strategic merger in a transaction that created substantial value to its stakeholders. Home Diagnostics was listed on the NASDAQ stock market until its strategic merger.

      Nipro purchased Home Diagnostics in 2010 for 90% premium...

      • 1 Reply to chris_cs16
      • Looking at additional reports on the Cardiocom acquisition, it looks like Medtronic paid anywhere from 4x sales to 8x sales, so the implied prices I mentioned for BioTelemetry would be closer to the range of $20 to $40...

        I think the company should take the momentum it's earned in 2013 and put itself up for sale to maximize shareholder value. They've done a great job turning the business around and making it a more attractive asset. Time to cash in on that progress. The evidence is out there that a buyer would be willing to pay up...

        Sentiment: Strong Buy

    • I sold my position at $10.35 and jumped in again this morning. Volume is still low because the investors are still in the wait and see mode. I am expecting at least $8 by next week once the price becomes a little stable.

      Sentiment: Strong Buy

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